Posted at 12:44 p.m., Friday, September 8, 2006
Business briefs: Slower growth seen for Maui's economy
Advertiser Staff and News Services
Maui's economy remains on solid footing, but like the rest of the state growth is expected to slow from the heated pace of the last several years, First Hawaiian Bank consultant Leroy Laney said.Healthy tourism and construction sectors as well as development plans by local companies continue to underpin Maui's economic growth, Laney said at the 32nd Annual First Hawaiian Bank Economic Outlook Forum at the Maui Beach Hotel.
Factors that are likely to contribute to slower growth are an "extremely tight" labor market, harbor overcrowding and a slowdown in real estate sales, said Laney, who is a professor of economics and finance at Hawaii Pacific University.
Hilton Hotels may regain investment-grade rating
NEW YORK — Hilton Hotels Corp., the second- biggest U.S. lodging company, may regain investment-grade ratings as an increase in travel enables the company to reduce debt, according to traders betting on the creditworthiness of companies in the credit-default swap market.
The perceived risk of owning Hilton's bonds has fallen by more than a third since June 22, according to data compiled by Credit Suisse Group. The decline is twice as large as the average drop for investment-grade companies, Bloomberg data show.
Credit-default swaps are financial instruments based on corporate bonds and loans used to speculate on an increase or decrease in indebtedness.Investors are becoming more bullish on Hilton, owner of the Waldorf-Astoria in Manhattan and Hilton Hawaiian Village in Honolulu, after U.S. room prices rose an average 6.8 percent through the first seven months of 2006, according to Smith Travel Research in Hendersonville, Tennessee. Hilton also encouraged investors by promising to trim its $9.4 billion of debt.
